Final answer:
Local recreation and park agencies faced budget cuts by obtaining intergovernmental grants, partnering with local businesses, and getting involved in initiatives like neighborhood clean-ups and direct payments for ecosystem services.
Step-by-step explanation:
One way that local recreation and park agencies compensated for reductions in funding was through a variety of strategies such as seeking intergovernmental grants, forming partnerships with local businesses, and implementing programs that provided economic incentives for community-based natural resource management and neighborhood clean-up initiatives.
During the Great Recession, as state and local government budgets were significantly impacted, important sources of revenue like intergovernmental grants became crucial. The federal government increased these grants to help alleviate fiscal strain. In addition to direct grants, other avenues to generate funds or reduce expenditures were explored. This included direct payments for ecosystem services, reduced tax payments for property improvements, and allowing businesses to manage local improvement efforts. These measures helped ensure that parks and recreation facilities could continue to operate despite financial challenges.